<PAGE>
Templeton Global
Infrastructure Fund
- --------------------------------------------------------------------------------
Your Fund's Objective
The Templeton Global Infrastructure Fund seeks long-term capital growth by
investing primarily in securities of domestic and foreign companies that are
principally engaged in or related to the development, operation or
rehabilitation of the physical and social infrastructures of various nations
throughout the world.
- --------------------------------------------------------------------------------
May 19, 1995
Dear Shareholder:
The first full year of operation for the Templeton Global Infrastructure Fund
was a challenging time for international investors. Rising global interest rates
and the currency disaster in Mexico affected stock markets all around the world.
One need only look south of the U.S. to realize the magnitude of some stock
market corrections during this period. In dollar terms, the Mexican Bolsa
declined approximately 65% from its high on September 23, 1994 to its low on
February 27, 1995, and Argentina's stock market average dropped by more than 40%
from its 1994 high. While short-term volatility can be disconcerting, declines
of as much as 40% to 50% are not unusual in emerging markets. For example, the
Hong Kong market has increased 1000% in the last 15 years, but has suffered nine
declines of more than 20% during that time.
As with any difficult situation, one can find promise, and we found it in the
attractive stock valuations of numerous, high-quality companies in many of these
devastated markets. We continued to build the portfolio by adding to our current
holdings, as well as purchasing new companies on a selective basis. Of course,
thorough due diligence is necessary before investing. Our research staff combed
the globe for values both in the devastated emerging markets as well as the
relatively strong, developed markets in the U.S. and Europe. This has helped us
identify several companies engaged in infrastructure-building, which we believe
are the best in their particular industries and countries.
1
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Geographic Distribution on 3/31/95
Based on Total Net Assets
Canada 3.7%
Australia 3.7%
[PIE CHART APPEARS HERE] Europe 32.4%
Latin America 6.5%
United States 14.7%
Asia 18.4%
Short-Term Obligations &
Other Net Assets 20.6%
For example, the valuation of Central Costanera, an Argentine electric power
company, has become quite attractive due to the economic and stock market
turmoil in that country. The company's stock price has declined approximately
40% from its recent high and currently offers a dividend yield of 10%. This
price is also less than 10 times its per share earnings, a fact we believe
indicates value. Two fundamental factors also lend support to our enthusiasm for
this stock. First, we feel that the electric power sector should be somewhat
immune to the Argentine economic cycle. Second, the company's long-term dollar-
denominated sales contracts account for more than 50% of its profits, which
would tend to insulate the company from any sudden depreciation of the Argentine
currency.
Within the developed markets, we found value in European telecommunication
equipment providers, which service the needs of the telephone operating
companies. Many of these operators generate substantial, positive, free
cashflow, which they use to improve their networks. Telecommunication equipment
suppliers will be the direct beneficiaries of these expenditures. In positioning
the fund to participate in this booming sector, we recently purchased Alcatel
Alsthom, a leader in providing such infrastructure equipment for this industry.
The wireless communication boom is also affecting this sector. In Europe,
cellular phones account for approximately one-third of all new connections and
this percentage is expected to double within the next few years. With cellular
infrastructure representing approximately 8% of equipment spending, we expect
substantial growth in this sector. Allgon, a Swedish supplier of cellular
infrastructure equipment, is an example of a holding we believe should benefit
handsomely from this robust growth.
2
<PAGE>
Our outlook for the remainder of 1995 is one of cautious optimism. Although
investors' confidence in the international markets has been shaken, we believe
that these markets should provide superior returns over the long term. We are
familiar with the problems in many of the countries where we invest, but remain
convinced that they should prosper, offering attractive, long-term prospects.
Our goal is to establish investments in very attractive companies at reasonable
prices. Our value philosophy and long-term strategy enhance the likelihood of
achieving that goal, and our excitement about global infrastructure investments
remains intact. As a report published for the World Bank so accurately observed,
"Infrastructure represents, if not the engine, then the `wheels' of economic
activity."*
*Source: World Development Report - 1994: "Infrastructure for Development"
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Top Ten Holdings as of 3/31/95
Based on Total Net Assets
<TABLE>
<CAPTION>
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------------------------------
<S> <C>
BBC Brown Boveri Ltd., br.;
Electrical & Electronics, Switzerland 1.8%
- --------------------------------------------------------------------------------
National Gypsum Co.;
Construction & Housing, United States 1.7%
- --------------------------------------------------------------------------------
Newbridge Networks Corp.;
Data Processing & Reproduction, Canada 1.6%
- --------------------------------------------------------------------------------
Koninklijke PTT Nederland;
Telecommunications, Netherlands 1.6%
- --------------------------------------------------------------------------------
Millicom International Cellular, SA;
Telecommunications, Luxembourg 1.6%
- --------------------------------------------------------------------------------
Central Costanera, SA;
Utilities - Electric & Gas, Argentina 1.6%
- --------------------------------------------------------------------------------
Svedala Industri; Building Materials &
Components, Sweden 1.5%
- --------------------------------------------------------------------------------
Aker A/S; Building Materials &
Components, Norway 1.5%
- --------------------------------------------------------------------------------
Shandong Huaneng Power
Development Co. Ltd.;
Utilities - Electrical & Gas, China 1.5%
- --------------------------------------------------------------------------------
National Power, PLC; Utilities -
Electrical & Gas, United Kingdom 1.4%
- --------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, please see page 7 of this report.
3
<PAGE>
Because the fund focuses on infrastructure-related industries, its return may be
more volatile than that of a more broadly diversified investment. These special
considerations are discussed in the prospectus. Of course, investments in
foreign securities involve special risks, such as market and currency volatility
and adverse economic, social and political developments in the countries where
the fund is invested. Developing markets involve heightened risks related to the
same factors, in addition to risks associated with the relatively small size and
lesser liquidity of these markets.
Thank you for investing in the Templeton Global Infrastructure Fund. We
appreciate your support and welcome your comments.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Gary R. Clemons
Gary R. Clemons
Portfolio Manager
Templeton Global Infrastructure Fund
- --------------------------------------------------------------------------------
Although Sir John Templeton has not been involved in investment management of
the Templeton funds since October 1992, we were saddened by his recent decision
to step down as Chairman and Director of the U.S. registered Templeton funds.
The independent directors have nominated John Wm. Galbraith, former vice
chairman of Templeton, Galbraith & Hansberger, Ltd. to succeed him. The
investment manager will continue to use the investment philosophies and
principles established by Sir John.
- --------------------------------------------------------------------------------
4
<PAGE>
Performance Summary
The Templeton Global Infrastructure Fund reported a total return of -5.41% for
the one-year period ended March 31, 1995, and -5.31% since inception on March
14, 1994. Total return measures the change in value of an investment, assuming
reinvestment of dividends, and does not include the maximum initial sales
charge. While we expect market volatility in the short term, we maintain a long-
term perspective in managing the Fund, and we encourage shareholders to view
their investments in a similar manner.
During the reporting period, the Fund's share price, as measured by net asset
value, decreased from $10.01 on March 31, 1994 to $9.43 on March 31, 1995.
During this time, shareholders received distributions of 4.0 cents ($0.04) per
share in dividend income. Of course, past performance is not predictive of
future results, and distributions will vary depending on income earned by the
Fund, as well as any profits realized from the sale of securities in the
portfolio.
The graph to the right compares the performance of the Templeton Global
Infrastructure Fund to the unmanaged Morgan Stanley Capital International (MSCI)
World Index, which tracks 22 equity markets worldwide, and the Goldman Sachs
Extended Global Market Index (GS-EGMI), which is a combination of the Financial
Times - Actuaries World Index and the International Finance Corporation
Investable Composite Index, and which tracks equity securities in markets around
the world. Please remember that the Fund's performance differs from that of
either index because the indices do not contain cash (the Fund generally carries
a certain percentage of cash at any given time) and includes no sales charges or
management expenses. Of course, one cannot invest directly in an index.
- --------------------------------------------------------------------------------
Templeton Global Infrastructure Fund
Total Return Index Comparison
$10,000 Investment (3/14/94 - 3/31/95)
Templeton Global Infrastructure Fund
Total Return Index Comparison
$10,000 Investment (3/14/94 - 3/31/95)
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL INFRASTRUCTURE
FUND/1/, MSCI WORLD INDEX/2/ AND GS-EGMI WORLD INDEX/2/]
<TABLE>
<CAPTION>
3/94 3/95
------ ------
<S> <C> <C>
Templeton Global Infrastructure Fund/1/ 9,510 8,924
MSCI World Index/2/ 10,000 10,722
GS-EGMI World Index/2/ 10,000 10,636
</TABLE>
1. Includes all sales charges and represents the change in value of an
investment over the indicated period, assuming reinvestment of dividends and
capital gains, if any. Past performance is not predictive of future results.
2. Includes reinvested dividends.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Templeton Global
Infrastructure Fund
Periods Ended 3/31/95
<TABLE>
<CAPTION>
Since
Inception
One-Year (3/14/94)
<S> <C> <C>
Cumulative
Total Return** -5.41% -5.31%
Average Annual
Total Return* -10.84% -10.31%
</TABLE>
*Average annual total return represents the average annual change in value of an
investment over the indicated periods, and includes the maximum 5.75% initial
sales charge.
**Cumulative total return represents the change in value of an investment over
the specified periods. It does not include the maximum 5.75% initial sales
charge.
All total returns assume reinvestment of dividends when paid. Investment return
and principal value will fluctuate with market conditions, currencies and the
economic and political climates where investments are made, so that your shares,
when redeemed, may be worth more or less than their initial cost. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
fund expenses on an annual basis. The Fund's manager is waiving a portion of its
management fees, which reduces operating expenses and increases total return to
shareholders. Without these reductions, the Fund's total return would have been
lower. The fee waiver may be discontinued at any time.
The historical performance data shown in the table above pertain only to Class I
shares of the fund. Class II shares, which the fund began offering on May 1,
1995, are subject to different fees and expenses, which will affect their
performance. Performance data for Class II shares are not yet available. Please
see the prospectus for more details regarding Class I and Class II shares.
- --------------------------------------------------------------------------------
5
<PAGE>
Templeton Global Infrastructure Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE (For a share outstanding throughout the period)
<TABLE>
<CAPTION>
MARCH 14, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 10.01 $ 10.00
-------- -------
Income from investment operations:
Net investment income .07 .009
Net realized and unrealized gain (loss) (.61) .001
-------- -------
Total from investment operations (.54) .01
Distributions to shareholders from net invest-
ment income (.04) --
-------- -------
Change in net asset value (.58) .01
-------- -------
Net asset value, end of period $ 9.43 $ 10.01
======== =======
TOTAL RETURN* (5.41)% 0.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 18,717 $ 101
Ratio of expenses to average net assets 3.25% 32.02%**
Ratio of expenses, net of reimbursement, to
average net assets 1.25% 1.25%**
Ratio of net investment income to average net
assets 1.38% 1.89%**
Portfolio turnover rate 3.21% --
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED.
**ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS: 76.8%
- -------------------------------------------------------------------------------
Aerospace & Military Technology: 0.6%
*Actel Corp. U.S. 9,100 $ 113,750
- -------------------------------------------------------------------------------
Automobiles: 0.1%
Ciadea SA Arg. 700 3,605
- -------------------------------------------------------------------------------
Building Materials & Components: 11.0%
Acme Landis Holdings Ltd. H.K. 1,200,000 128,815
Aker AS, A Nor. 22,000 276,584
Anglian Group PLC U.K. 40,000 96,570
Byucksan Development Co. Ltd. Kor. 500 9,001
Cementos Diamante, ADR Col. 1,800 34,866
*Cementos Paz del Rio, ADR Col. 11,600 204,450
*Chakwal Cement Co. Ltd., GDR Pkr. 16,250 134,063
*Corcemar Corp. Arg. 38,300 180,001
Karat Sanitaryware Public Co.
Ltd., fgn. Thai. 29,500 102,426
Masco Corp. U.S. 6,000 165,750
*Owens Corning Fiberglas Corp. U.S. 3,900 140,400
Parbury Ltd. Aus. 538,000 212,951
Svedala Industri, A Swe. 12,000 284,364
Unione Cementi Marchino
Emiliane (Unicem), di Risp Itl. 31,000 90,550
------------
2,060,791
- -------------------------------------------------------------------------------
Chemicals: 0.6%
*European Vinyls Corp. EVC
International NV Neth. 2,865 119,213
- -------------------------------------------------------------------------------
Construction & Housing: 5.8%
Dragados y Construcciones SA Sp. 18,900 220,288
*European Techniki Gr. 12,750 142,260
Hsin Chong Construction Group
Ltd. H.K. 42,000 4,834
Kaufman & Broad Home Corp. U.S. 13,400 159,125
*National Gypsum Co. U.S. 6,300 316,575
Raine PLC U.K. 211,000 80,343
Sociedade Construcoes Soares
da Costa SA Port. 4,000 80,191
*Sociedade Construcoes Soares
da Costa SA, new Port. 1,200 23,811
*U.S. Home Corp. U.S. 3,400 59,075
------------
1,086,502
- -------------------------------------------------------------------------------
Data Processing & Reproduction: 2.9%
*Digital Equipment Corp. U.S. 500 18,875
International Business
Machines Corp. U.S. 800 65,500
*Madge NV, ADR Neth. 6,800 158,950
*Newbridge Networks Corp. Can. 9,300 304,575
------------
547,900
- -------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Electrical & Electronics: 4.5%
BBC Brown Boveri Ltd., br. Swtz. 348 $ 330,565
*Dongfang Electrical Machinery
Co. Ltd., H H.K. 358,000 113,438
Gold Peak Industries
(Holdings) Ltd. H.K. 352,000 127,470
Hitachi Ltd. Jpn. 1,000 10,369
Stanilite Pacific Aus. 166,200 255,831
------------
837,673
- -------------------------------------------------------------------------------
Electronic Components & Instruments: 3.2%
Allgon AB, B free Swe. 10,100 173,692
BICC U.K. 44,300 240,460
Draka Holding NV Neth. 7,000 176,665
------------
590,817
- -------------------------------------------------------------------------------
Energy Sources: 1.3%
*Hub Power Co. Ltd., GDR Pkr. 22,500 241,875
- -------------------------------------------------------------------------------
Forest Products & Paper: 2.1%
*PT Barito Pacific Timber,
fgn. Indo. 115,000 155,440
Weyerhaeuser Co. U.S. 6,000 233,250
------------
388,690
- -------------------------------------------------------------------------------
Industrial Components: 1.6%
BW/IP Inc. U.S. 8,400 138,600
*Shaw Group Inc U.S. 26,000 156,000
------------
294,600
- -------------------------------------------------------------------------------
Machinery & Engineering: 2.3%
SNC-Lavalin Group Inc., A Can. 10,600 166,685
*Tampella AB (OY) Fin. 48,100 103,465
*VA Technologie AG, br. Aust. 1,680 169,587
------------
439,737
- -------------------------------------------------------------------------------
Metals & Mining: 1.4%
Kang Won Industrial Co. Ltd. Kor. 11,000 216,552
Maanshan Iron & Steel Co.
Ltd., H Chn. 60,000 12,416
*Outokumpu OY, A Fin. 1,800 26,770
*Outokumpu OY, wts. Fin. 50 21
------------
255,759
- -------------------------------------------------------------------------------
Multi-Industry: 1.6%
Hutchison Whampoa Ltd. H.K. 20,000 88,205
Metra OY, B Fin. 6,100 220,099
------------
308,304
- -------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Real Estate: 3.1%
Filinvest land inc. Phil. 913,000 $ 232,656
MDX Public Co. Ltd., fgn. Thai. 22,000 45,563
New World Development Co. Ltd. H.K. 44,000 119,788
Taylor Woodrow PLC U.K. 97,300 181,303
------------
579,310
- -------------------------------------------------------------------------------
Telecommunications: 22.8%
ABC Communications (Holdings)
Ltd. H.K. 20,000 5,173
Alcatel Alsthom SA Fr. 2,600 234,860
Allen Group Inc U.S. 9,300 231,338
*Antec Corp. U.S. 8,750 210,000
BC Telecom Inc. Can. 6,500 111,504
BCE Inc. Can. 3,500 108,063
*Chengdu Telecommunications
Cable Co. Ltd., H Chn. 575,000 185,916
*Compania de Telefonos de
Chile SA, ADR Chil. 1,800 120,150
*Elcotel Inc. U.S. 38,000 156,750
Koninklijke PTT Nederland Neth. 8,600 303,863
*LCI International U.S. 4,800 119,400
*LDDS Communications Inc. U.S. 1,200 28,050
MCI Communications Corp. U.S. 10,000 206,250
*Millicom International
Cellular SA Lux. 11,100 294,150
*Orient Telecom & Technology
Holdings Ltd. H.K. 320,000 112,778
*Pakistan Telecom Corp. PTC Pkr. 1,890 173,880
Philippine Long Distance
Telephone Co., ADR Phil. 4,400 266,200
PT Indosat, ADR Indo. 7,000 246,750
STET (Sta Finanziaria
Telefonica Torino) SPA, di
Risp Itl. 48,000 97,072
Telecom Italia Spa Itl. 60,000 140,241
Telecom Italia Spa, di Risp Itl. 61,000 112,930
*Teledanmark AS, ADS Den. 4,960 131,440
*Teledanmark AS, B Den. 1,090 57,621
Telefonica de Argentina SA, B,
ADR Arg. 8,400 202,650
Telefonica de Espana SA Sp. 20,900 265,069
Telefonos de Mexico SA, L, ADR Mex. 5,210 148,485
------------
4,270,583
- -------------------------------------------------------------------------------
Transportation: 1.6%
*Bremer Vulkan Verbund AG Ger. 2,400 137,741
IMC Holdings Ltd. H.K. 140,000 92,343
*Shanghai Hai Xing Shipping
Co., H Chn. 350,000 66,089
Transportacion Maritima
Mexicana SA de CV, L, ADR Mex. 1,000 5,750
------------
301,923
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- --------------------------------------------------------------------------------
Utilities Electrical & Gas: 10.3%
Australian Gas & Light
Company Aus. 70,600 $ 217,349
Central Costanera SA,
ADR Arg. 9,850 290,575
*CEZ Csk. 4,800 196,607
Consolidated Electric
Power Asia Ltd., ADR H.K. 8,500 176,375
Iberdrola SA Sp. 39,600 234,690
National Power PLC U.K. 38,400 266,299
Powergen PLC U.K. 1,700 12,781
*Shandong Huaneng Power Chn. 30,500 274,500
Texas Utilities Electric
Co. U.S. 8,000 254,000
Wing Shan International
Ltd. H.K. 114,000 13,859
------------
1,937,035
------------
TOTAL COMMON STOCKS (cost $15,756,589) 14,378,067
- --------------------------------------------------------------------------------
PREFERRED STOCKS: 2.1%
- --------------------------------------------------------------------------------
*Ballast Nedam NV, ctf.,
conv., pfd. Neth. 3,400 148,075
Concessioni e
Costruzioni Autostrade
SPA, B, pfd. Itl. 180,000 225,013
Telebras-
Telecomunicacoes
Brasileiras SA, pfd.,
ADR Braz. 1,000 26,438
------------
TOTAL PREFERRED STOCKS (cost $392,049) 399,526
- --------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------
BOND: 0.5% (cost $100,000)
- --------------------------------------------------------------------------------
House of Investments
(Cayman) Ltd.,
4.00%, cnv., 10/17/01 U.S. 100,000 86,500
- --------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 19.6% (cost $3,669,253)
- --------------------------------------------------------------------------------
U.S. Treasury Bills,
5.53% to 5.66% with
maturities to 5/18/95 U.S. 3,688,000 3,670,782
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.0% (cost
$19,917,891) 18,534,875
OTHER ASSETS, LESS LIABILITIES: 1.0% 181,652
------------
TOTAL NET ASSETS: 100.0% $ 18,716,527
============
</TABLE>
*NON-INCOME PRODUCING.
**PRINCIPAL AMOUNT IN CURRENCY OF COUNTRY INDICATED.
10
<PAGE>
Templeton Global Infrastructure Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995
<TABLE>
<S> <C>
Assets:
Investment in securities, at value (identified cost $19,917,891) $18,534,875
Cash 5,319
Receivables:
Investment securities sold 120,123
Fund shares sold 110,141
Dividends and interest 30,888
Administrative fee reimbursement 104,287
Unamortized organization costs 59,142
-----------
Total assets 18,964,775
-----------
Liabilities:
Payables:
Investment securities purchased 112,675
Fund shares redeemed 48,874
Accrued expenses 86,699
-----------
Total liabilities 248,248
-----------
Net assets, at value $18,716,527
===========
Net assets consists of:
Undistributed net investment income $ 71,514
Net unrealized depreciation (1,383,016)
Accumulated net realized loss (72,292)
Net capital paid in on shares of beneficial interest 20,100,321
-----------
Net assets, at value $18,716,527
===========
Shares outstanding 1,984,085
===========
Net asset value per share
($18,716,527 / 1,984,085) $ 9.43
===========
Maximum offering price
($9.43 / 94.25%) $ 10.01
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
for the year ended March 31, 1995
<TABLE>
<S> <C> <C>
Investment income: (net of $8,506
foreign taxes withheld)
Dividends $ 104,525
Interest 160,363
----------
Total income $ 264,888
Expenses:
Management fees (Note 3) 75,663
Administrative fees (Note 3) 15,126
Distribution fees (Note 3) 35,373
Transfer agent fees (Note 3) 21,500
Custodian fees 27,525
Reports to shareholders 26,400
Audit fees 11,500
Legal fees 19,450
Registration and filing fees 62,700
Trustees' fees and expenses 15,000
Amortization of organization costs 14,990
Other 2,367
----------
Total expenses 327,594
Less expenses reimbursed (Note 3) (201,483)
----------
Total expenses less reimbursement 126,111
-----------
Net investment income 138,777
Realized and unrealized loss:
Net realized loss on:
Investments (46,554)
Foreign currency transactions (25,738)
----------
(72,292)
Net unrealized depreciation on investments (1,383,044)
----------
Net realized and unrealized loss (1,455,336)
-----------
Net decrease in net assets resulting from operations $(1,316,559)
===========
</TABLE>
11
<PAGE>
Templeton Global Infrastructure Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MARCH 14, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
-------------- ----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 138,777 $ 88
Net realized loss from security and foreign
currency transactions (72,292) --
Net unrealized appreciation (depreciation) (1,383,044) 28
----------- --------
Net increase (decrease) in net assets re-
sulting from operations (1,316,559) 116
Distributions to shareholders from net in-
vestment income (67,351) --
Fund share transactions (Note 2) 19,999,597 724
----------- --------
Net increase in net assets 18,615,687 840
Net assets:
Beginning of period 100,840 100,000
----------- --------
End of period $18,716,527 $100,840
=========== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Infrastructure Fund (the Fund) is a separate series of Temple-
ton Global Investment Trust (the Trust), a Delaware business trust, which is an
open-end diversified management investment company registered under the Invest-
ment Company Act of 1940. The following summarizes the Fund's significant ac-
counting policies.
a. SECURITIES VALUATIONS:
Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal ex-
change on which the securities are traded. Over-the-counter securities and
listed securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
b. FOREIGN CURRENCY TRANSLATIONS:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of for-
eign currencies, currency gains or losses realized between the trade and set-
tlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
c. INCOME TAXES:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all its
taxable income to its shareholders. Therefore, no provision has been made for
income taxes.
d. UNAMORTIZED ORGANIZATION COSTS:
Organization costs are being amortized on a straight line basis over five
years.
e. SECURITY TRANSACTIONS, INVESTMENT INCOME, DISTRIBUTIONS, AND EXPENSES:
Security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Certain dividend income from foreign secu-
rities is recorded as soon as information is available to the Fund. Interest
income and estimated expenses are accrued daily. Distributions to shareholders,
which are determined in accordance with income tax regulations, are recorded on
the ex-dividend date.
13
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
At March 31, 1995, there was an unlimited number of shares of beneficial inter-
est authorized ($.01 par value). Transactions in the Fund's shares were as fol-
lows:
<TABLE>
<CAPTION>
PERIOD FROM
MARCH 14, 1994
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
---------------------- --------------------
SHARES VALUE SHARES VALUE
--------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold 2,174,807 $21,960,517 72 $ 724
Shares issued on reinvest-
ment of distributions 6,386 62,070 -- --
Shares redeemed (207,180) (2,022,990) -- --
--------- ----------- -------- ---------
Net increase 1,974,013 $19,999,597 72 $ 724
========= =========== ======== =========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 100,321 shares as of March 31, 1995.
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal underwriter, and transfer agent, respectively. The Fund pays monthly an in-
vestment management fee to TICI equal, on an annual basis, to 0.75% of the
Fund's average daily net assets. The Fund pays TGII monthly its allocated share
of an administrative fee of 0.15% per annum on the first $200 million of the
Trust's aggregate average daily net assets, 0.135% of the next $500 million,
0.10% of the next $500 million, and 0.075% per annum of average net assets in
excess of $1.2 billion. TGII has voluntarily agreed to limit the total expenses
of the Fund to an annual rate of 1.25% of the Fund's average net assets. Effec-
tive April 15, 1995, TGII has eliminated the expense limitation on the total
expenses of the Fund. The amount of the reimbursement for the year ended March
31, 1995 is set forth in the Statement of Operations. For the year ended March
31, 1995, FTD received net commissions of $52,041 from the sale of the Fund's
shares and FTIS received fees of $21,500.
Pursuant to a distribution plan, the Fund reimburses FTD monthly (subject to a
limit of 0.35% per annum of the Fund's average daily net assets) for FTD's
costs and expenses in connection with any activity that is primarily intended
to result in sales of Fund shares. Such distribution fees are set forth in the
Statement of Operations.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $19,450 for the year ended March 31,
1995.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1995 aggregated $16,517,019 and $222,432, respectively.
The cost of securities for federal income tax purposes is the same as that
shown in the Statement of Assets and Liabilities. Realized gains and losses are
reported on an identified cost basis.
At March 31, 1995, the aggregate gross unrealized appreciation and depreciation
of portfolio securities based on cost for federal income tax purposes, was as
follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 657,383
Realized depreciation (2,040,399)
-----------
Net unrealized depreciation $(1,383,016)
===========
</TABLE>
14
<PAGE>
Templeton Global Infrastructure Fund
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Global Infrastructure Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Global Infrastructure Fund as of March
31, 1995, and the related statement of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
ended March 31, 1995 and for the period from March 14, 1994 (commencement of
operations) to March 31, 1994. These financial statements and financial high-
lights are the responsibility of the Fund's management. Our responsibility is
to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement pre-
sentation. We believe that our audits provide a reasonable basis for our opin-
ion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Tem-
pleton Global Infrastructure Fund, as of March 31, 1995, the results of its op-
erations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
April 28, 1995
15
<PAGE>
- --------------------------
TEMPLETON GLOBAL
INFRASTRUCTURE FUND
Auditors
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017-2416
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Account Services
1-800-354-9191
Sales Information
1-800-292-9293
This report must be preceded or accompanied by the prospectus of Templeton
Global Infrastructure Fund. Like any investment in securities, the value of the
Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political and other factors, as well as investment decisions by the
investment manager which will not always be profitable or wise. The Fund and
its investors are not protected from such losses by the investment manager.
Therefore, investors who cannot accept this risk should not invest in shares of
the Fund.
To ensure the highest quality of service, telephone calls to or from our
service departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
--------------------------
TL13 A95 05/95
[LOGO APPEARS HERE]
TEMPLETON
GLOBAL
INFRASTRUCTURE
FUND
Annual Report
March 31, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
